O'Reilly Automotive (ORLY) 10-Q10 Aug 202020 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Aug. 03, 2020
Document and Entity Information
Document type	10-Q
Document quarterly report	true
Document transition report	false
Amendment flag	false
Current fiscal year end date	--12-31
Document period end date	Jun. 30, 2020
Document fiscal year focus	2020
Document fiscal period focus	Q2
Entity registrant name	O Reilly Automotive Inc
Entity central index key	0000898173
Entity incorporation, state	MO
Entity file number	000-21318
Entity tax identification number	27-4358837
Entity address, address	233 South Patterson Avenue
Entity address, city	Springfield
Entity address, postal zip code	65802
Entity address, state	MO
City area code	417
Local phone number	862-6708
Title of 12(b) security	Common Stock
Trading symbol	ORLY
Security exchange name	NASDAQ
Entity current reporting status	Yes
Entity filer category	Large Accelerated Filer
Entity small business	false
Entity emerging growth company	false
Entity interactive data current	Yes
Entity shell company	false
Entity common stock, shares outstanding		74,064,777

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	[1]
Assets
Cash and cash equivalents	$ 872,423	$ 40,406
Accounts receivable, net	243,660	214,915
Amounts receivable from suppliers	86,513	79,492
Inventory	3,528,683	3,454,092
Other current assets	53,206	44,757
Total current assets	4,784,485	3,833,662
Property and equipment, at cost	6,403,936	6,191,427
Less: accumulated depreciation and amortization	2,365,453	2,243,224
Net property and equipment	4,038,483	3,948,203
Operating lease, right-of-use assets	1,926,270	1,928,369
Goodwill	872,997	936,814
Other assets, net	106,300	70,112
Total assets	11,728,535	10,717,160
Liabilities and shareholders' equity
Accounts payable	3,936,400	3,604,722
Self-insurance reserves	90,890	79,079
Accrued payroll	107,116	100,816
Accrued benefits and withholdings	140,446	98,539
Income taxes payable	91,797	0
Current portion of operating lease liabilities	318,601	316,061
Other current liabilities	336,886	270,210
Total current liabilities	5,022,136	4,469,427
Long-term debt	4,127,397	3,890,527
Operating lease liabilities, less current portion	1,652,284	1,655,297
Deferred income taxes	155,530	133,280
Other liabilities	182,088	171,289
Shareholders' equity:
Common stock, $0.01 par value : Authorized shares - 245,000,000 Issued and outstanding shares - 74,097,706 as of June 30, 2020, and 75,618,659 as of December 31, 2019	741	756
Additional paid-in capital	1,289,976	1,280,760
Retained deficit	(679,506)	(889,066)
Accumulated other comprehensive (loss) income	(22,111)	4,890
Total shareholders' equity	589,100	397,340
Total liabilities and shareholders' equity	$ 11,728,535	$ 10,717,160

[1]	The balance sheet at December 31, 2019, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Condensed Consolidated Balance Sheets
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	245,000,000	245,000,000
Common stock, shares issued	74,097,706	75,618,659
Common stock, shares outstanding	74,097,706	75,618,659

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Condensed Consolidated Statements of Income
Sales	$ 3,091,595	$ 2,589,874	$ 5,568,082	$ 5,000,482
Cost of goods sold, including warehouse and distribution expenses	1,454,415	1,221,587	2,634,996	2,352,905
Gross profit	1,637,180	1,368,287	2,933,086	2,647,577
Selling, general and administrative expenses	900,690	870,213	1,773,035	1,704,717
Operating income	736,490	498,074	1,160,051	942,860
Other income (expense):
Interest expense	(41,723)	(34,538)	(81,109)	(68,829)
Interest income	635	603	1,310	1,157
Other, net	5,008	832	(182)	3,935
Total other expense	(36,080)	(33,103)	(79,981)	(63,737)
Income before income taxes	700,410	464,971	1,080,070	879,123
Provision for income taxes	168,743	111,290	247,965	204,290
Net income	$ 531,667	$ 353,681	$ 832,105	$ 674,833	[1]
Earnings per share-basic:
Earnings per share	$ 7.16	$ 4.56	$ 11.15	$ 8.65
Weighted-average common shares outstanding - basic	74,205	77,613	74,611	78,047
Earnings per share-assuming dilution:
Earnings per share	$ 7.10	$ 4.51	$ 11.06	$ 8.56
Weighted-average common shares outstanding - assuming dilution	74,833	78,412	75,246	78,854

[1]	Note: Certain prior period amounts have been reclassified to conform to current period presentation.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 531,667	$ 353,681	$ 832,105	$ 674,833	[1]
Other comprehensive income (loss):
Foreign currency translation adjustments	3,645	0	(27,001)	0
Total other comprehensive income (loss)	3,645	0	(27,001)	0
Comprehensive income	$ 535,312	$ 353,681	$ 805,104	$ 674,833

[1]	Note: Certain prior period amounts have been reclassified to conform to current period presentation.

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings (Deficit) [Member]Cumulative Effect, Period of Adoption, Adjustment [Member]	Retained Earnings (Deficit) [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member]	Total
Balance at beginning of period at Dec. 31, 2018	$ 790	$ 1,262,063	$ (1,410)	$ (909,186)	$ 0	$ (1,410)	$ 353,667
Balance (in shares) at Dec. 31, 2018	79,044
Net income				674,833			674,833	[1]
Total other comprehensive income (loss)							0
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes		8,053					8,053
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares	25
Net issuance of common stock upon exercise of stock options	$ 2	19,926					19,928
Net issuance of common stock upon exercise of stock options, shares	181
Share-based compensation		10,328					10,328
Share repurchases, including fees	$ (25)	(41,440)		(879,252)			$ (920,717)
Share repurchases, including fees, shares	(2,560)						(2,560,000)
Balance at end of period at Jun. 30, 2019	$ 767	1,258,930		(1,115,015)	0		$ 144,682
Balance (in shares) at Jun. 30, 2019	76,690
Balance at beginning of period at Mar. 31, 2019	$ 783	1,268,032		(896,450)	0		372,365
Balance (in shares) at Mar. 31, 2019	78,262
Net income				353,681			353,681
Total other comprehensive income (loss)							0
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes		4,281					4,281
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares	13
Net issuance of common stock upon exercise of stock options		7,973					7,973
Net issuance of common stock upon exercise of stock options, shares	48
Share-based compensation		5,243					5,243
Share repurchases, including fees	$ (16)	(26,599)		(572,246)			$ (598,861)
Share repurchases, including fees, shares	(1,633)						(1,633,000)
Balance at end of period at Jun. 30, 2019	$ 767	1,258,930		(1,115,015)	0		$ 144,682
Balance (in shares) at Jun. 30, 2019	76,690
Balance at beginning of period at Dec. 31, 2019	$ 756	1,280,760		(889,066)	4,890		$ 397,340	[2]
Balance (in shares) at Dec. 31, 2019	75,619						75,618,659
Net income				832,105			$ 832,105
Total other comprehensive income (loss)					(27,001)		(27,001)
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes		8,922					8,922
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares	27
Net issuance of common stock upon exercise of stock options	$ 2	17,981					17,983
Net issuance of common stock upon exercise of stock options, shares	121
Share-based compensation		10,778					10,778
Share repurchases, including fees	$ (17)	(28,465)		(622,545)			$ (651,027)
Share repurchases, including fees, shares	(1,669)						(1,669,000)
Balance at end of period at Jun. 30, 2020	$ 741	1,289,976		(679,506)	(22,111)		$ 589,100
Balance (in shares) at Jun. 30, 2020	74,098						74,097,706
Balance at beginning of period at Mar. 31, 2020	$ 742	1,271,250		(1,137,392)	(25,756)		$ 108,844
Balance (in shares) at Mar. 31, 2020	74,199
Net income				531,667			531,667
Total other comprehensive income (loss)					3,645		3,645
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes		4,818					4,818
Issuance of common stock under employee benefit plans, net of forfeitures and shares withheld to cover taxes, shares	15
Net issuance of common stock upon exercise of stock options	$ 1	11,846					11,847
Net issuance of common stock upon exercise of stock options, shares	69
Share-based compensation		5,254					5,254
Share repurchases, including fees	$ (2)	(3,192)		(73,781)			$ (76,975)
Share repurchases, including fees, shares	(185)						(185,000)
Balance at end of period at Jun. 30, 2020	$ 741	$ 1,289,976		$ (679,506)	$ (22,111)		$ 589,100
Balance (in shares) at Jun. 30, 2020	74,098						74,097,706

[1]	Note: Certain prior period amounts have been reclassified to conform to current period presentation.
[2]	The balance sheet at December 31, 2019, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	[1]
Operating activities:
Net income	$ 832,105	$ 674,833
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, equipment and intangibles	151,873	132,275
Amortization of debt discount and issuance costs	2,152	1,887
Deferred income taxes	14,987	8,364
Share-based compensation programs	11,480	11,015
Other	1,906	4,277
Changes in operating assets and liabilities:
Accounts receivable	(34,966)	(74,978)
Inventory	(78,086)	(69,103)
Accounts payable	334,503	138,522
Income taxes payable	210,855	(833)
Other	112,269	20,745
Net cash provided by operating activities	1,559,078	847,004
Investing activities:
Purchases of property and equipment	(244,471)	(295,608)
Proceeds from sale of property and equipment	4,846	3,138
Investment in tax credit equity investments	(95,292)	(1,717)
Other	(311)	839
Net cash used in investing activities	(335,228)	(293,348)
Financing activities:
Proceeds from borrowings on revolving credit facility	1,162,000	1,629,000
Payments on revolving credit facility	(1,423,000)	(1,760,000)
Proceeds from the issuance of long-term debt	499,795	499,955
Payment of debt issuance costs	(3,840)	(3,988)
Repurchases of common stock	(651,027)	(920,717)
Net proceeds from issuance of common stock	25,593	26,778
Other	(253)	(190)
Net cash used in financing activities	(390,732)	(529,162)
Effect of exchange rate changes on cash	(1,101)	0
Net increase in cash and cash equivalents	832,017	24,494
Cash and cash equivalents at beginning of the period	40,406	31,315
Cash and cash equivalents at end of the period	872,423	55,809
Supplemental disclosures of cash flow information:
Income taxes paid	20,187	194,503
Interest paid, net of capitalized interest	$ 73,091	$ 64,201

[1]	Note: Certain prior period amounts have been reclassified to conform to current period presentation.

Basis of Presentation

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2020
Basis of Presentation
Basis of presentation	NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of O’Reilly Automotive, Inc. and its subsidiaries (the “Company” or “O’Reilly”) have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2020, are not necessarily indicative of the results that may be expected for the year ended December 31, 2020. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no effect on reported totals for assets, liabilities, shareholders’ equity, cash flows or net income. Principles of consolidation: The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. Variable Interest Entities: The Company invests in certain tax credit funds that promote renewable energy. These investments generate a return primarily through the realization of federal tax credits and other tax benefits. The Company accounts for the tax attributes of its renewable energy investments using the deferral method. Under this method, realized investment tax credits and other tax benefits are recognized as a reduction of the renewable energy investments. The Company determined its investment in these tax credit funds was an investment in a variable interest entity (“VIE”). The Company analyzes any investments in VIEs at inception and again if certain triggering events are identified to determine if it is the primary beneficiary. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. As of June 30, 2020, the Company invested in two unconsolidated tax credit fund entities that were considered to be VIEs and concluded it was not the primary beneficiary of either entity, as it did not have the power to control the activities that most significantly impact the entities, and has accounted for these investments using the equity method. The Company’s maximum exposure to losses associated with these VIEs is limited to its net investment, which was $14.3 million as of June 30, 2020, and was included in “Other assets, net” on the accompanying Condensed Consolidated Balance Sheets.

Business Combination

Business Combination	6 Months Ended
Business Combination	Jun. 30, 2020
Business Combination
Business combination	NOTE 2 – BUSINESS COMBINATION After the close of business on November 29, 2019, the Company completed the acquisition of Mayoreo de Autopartes y Aceites, S.A. de C.V. (“Mayasa”), a specialty retailer of automotive aftermarket parts headquartered in Guadalajara, Jalisco, Mexico pursuant to a stock purchase agreement. The results of Mayasa’s operations have been included in the Company’s condensed consolidated financial statements beginning from the date of acquisition. Pro forma results of operations related to the acquisition of Mayasa are not presented as Mayasa’s results are not material to the Company’s results of operations. The Company’s preliminary assessment resulted in the initial recognition of $128.1 million of goodwill and intangible assets included in “Goodwill” on the accompanying Condensed Consolidated Balance Sheets as of December 31, 2019. The purchase price allocation process, consisting of collecting data and information to enable the Company to value the identified assets acquired and liabilities assumed as a result of the business combination, remains preliminary. During the second quarter of 2020, the Company updated the purchase price assessment to make preliminary allocations for certain separately identifiable intangible assets. Separately identifiable intangible assets, arising as a result of the business combination, include $36.0 million of indefinite lived trade names and trademarks and $22.3 million of finite lived intangible assets, primarily consisting of other trade names and trademarks, non-compete agreements, customer relationships and internal use software. Residual goodwill of $75.6 million was recorded as of the acquisition date, as a result of the updated purchase price allocation. Goodwill generated from this acquisition is not amortizable for tax purposes.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2020
Fair Value Measurements
Fair value measurements	NOTE 3 – FAIR VALUE MEASUREMENTS The Company uses the fair value hierarchy, which prioritizes the inputs used to measure the fair value of certain of its financial instruments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company uses the income and market approaches to determine the fair value of its assets and liabilities. The three levels of the fair value hierarchy are set forth below: ● Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. ● Level 2 – Inputs other than quoted prices in active markets included within Level 1 that are observable for the asset or liability, either directly or indirectly. ● Level 3 – Unobservable inputs for the asset or liability. Financial assets and liabilities measured at fair value on a recurring basis: The Company invests in various marketable securities with the intention of selling these securities to fulfill its future unsecured obligation under the Company’s nonqualified deferred compensation plan. See Note 11 for further information concerning the Company’s benefit plans. The Company’s marketable securities were accounted for as trading securities and the carrying amount of its marketable securities were included in “Other assets, net” on the accompanying Condensed Consolidated Balance Sheets as of June 30, 2020, and December 31, 2019. The Company recorded an increase in fair value related to its marketable securities in the amount of $4.5 million and $1.0 million for the three months ended June 30, 2020 and 2019, which were included in “Other income (expense)” on the accompanying Condensed Consolidated Statements of Income. The Company recorded a decrease in fair value related to its marketable securities in the amount of $0.7 million for the six months ended June 30, 2020, and an increase in fair value related to its marketable securities in the amount of $3.7 million for the six months ended June 30, 2019, which were included in “Other income (expense)” on the accompanying Condensed Consolidated Statements of Income. The tables below identify the estimated fair value of the Company’s marketable securities, determined by reference to quoted market prices (Level 1), as of June 30, 2020, and December 31, 2019 (in thousands): June 30, 2020 Quoted Priced in Active Markets Significant Other Significant for Identical Instruments Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Marketable securities $ 33,250 $ — $ — $ 33,250 December 31, 2019 Quoted Prices in Active Markets Significant Other Significant for Identical Instruments Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Marketable securities $ 32,201 $ — $ — $ 32,201 Non-financial assets and liabilities measured at fair value on a nonrecurring basis: Certain long-lived non-financial assets and liabilities may be required to be measured at fair value on a nonrecurring basis in certain circumstances, including when there is evidence of impairment. These non-financial assets and liabilities may include assets acquired in a business combination or property and equipment that are determined to be impaired. As of June 30, 2020, and December 31, 2019, the Company did not have any non-financial assets or liabilities that had been measured at fair value subsequent to initial recognition. Fair value of financial instruments: The carrying amounts of the Company’s senior notes and unsecured revolving credit facility borrowings are included in “Long-term debt” on the accompanying Condensed Consolidated Balance Sheets as of June 30, 2020, and December 31, 2019. See Note 6 for further information concerning the Company’s senior notes and unsecured revolving credit facility. The table below identifies the estimated fair value of the Company’s senior notes, using the market approach. The fair value as of June 30, 2020, and December 31, 2019, was determined by reference to quoted market prices of the same or similar instruments (Level 2) (in thousands): June 30, 2020 December 31, 2019 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior Notes $ 4,127,397 $ 4,605,743 $ 3,629,527 $ 3,881,925 The carrying amount of the Company’s unsecured revolving credit facility approximates fair value (Level 2), as borrowings under the facility bear variable interest at current market rates. The accompanying Condensed Consolidated Balance Sheets include other financial instruments, including cash and cash equivalents, accounts receivable, amounts receivable from suppliers and accounts payable. Due to the short-term nature of these financial instruments, the Company believes that the carrying values of these instruments approximate their fair values.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts	6 Months Ended
Allowance for Doubtful Accounts	Jun. 30, 2020
Allowance for Doubtful Accounts.
Allowance for doubtful accounts	NOTE 4 – ALLOWANCE FOR DOUBTFUL ACCOUNTS The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company considers the following factors when determining if collection is reasonably assured: customer creditworthiness, past transaction history with the customer, current expectations of future economic and industry trends, changes in customer payment terms and management’s expectations. Allowances for doubtful accounts are determined based on historical experience and an evaluation of the current composition of accounts receivable. The Company grants credit to certain professional service provider and jobber customers who meet the Company’s pre-established credit requirements. Concentrations of credit risk with respect to these receivables are limited because the Company’s customer base consists of a large number of small customers, spreading the credit risk across a broad base regarded as a single class of financing receivable by the Company. The Company also controls this credit risk through credit approvals, credit limits and accounts receivable and credit monitoring procedures. Generally, the Company does not require security when credit is granted to customers. Credit is granted to customers on a short-term basis, consisting primarily of daily, weekly or monthly accounts. Credit losses are provided for in the Company’s condensed consolidated financial statements and have consistently been within management’s expectations. The Company’s allowance for doubtful accounts are included in “Accounts receivable, net” on the accompanying Condensed Consolidated Balance Sheets as of June 30, 2020, and December 31, 2019. The following table identifies the changes in the Company’s allowance for doubtful accounts for the six months ended June 30, 2020 (in thousands): Allowance for doubtful accounts, balance at December 31, 2019 $ 14,417 Reserve accruals 2,889 Uncollectable accounts written-off (3,703) Foreign currency translation (128) Allowance for doubtful accounts, balance at June 30, 2020 $ 13,475 The Company receives concessions from its suppliers through a variety of programs and arrangements, including allowances for new stores and warranties, volume purchase rebates and co-operative advertising. Co-operative advertising allowances that are incremental to the Company’s advertising program, specific to a product or event and identifiable for accounting purposes are reported as a reduction of advertising expense in the period in which the advertising occurred. All other supplier concessions are recognized as a reduction to the cost of sales. Amounts receivable from suppliers also include amounts due to the Company for changeover merchandise and product returns. The Company regularly reviews supplier receivables for collectability and assesses the need for a reserve for uncollectable amounts based on an evaluation of the Company’s suppliers’ financial positions and corresponding abilities to meet financial obligations. Management does not believe there is a reasonable likelihood that the Company will be unable to collect the aggregate amounts receivable from suppliers and the Company did not record a reserve for uncollectable amounts from suppliers in the condensed consolidated financial statements as of June 30, 2020, and December 31, 2019. See Note 14 for further information concerning the Company’s adoption of Accounting Standard Codification 326 – Financial Instruments – Credit Losses.

Leases

Leases	6 Months Ended
Leases	Jun. 30, 2020
Leases
Leases	NOTE 5 – LEASES The Company leases certain office space, retail stores, distribution centers and equipment under long-term, non-cancelable operating leases. The following table summarizes Total lease cost for the three and six months ended June 30, 2020 and 2019, which were primarily included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Operating lease cost $ 83,461 $ 80,091 $ 166,656 $ 158,905 Short-term operating lease cost 941 1,546 2,725 3,604 Variable operating lease cost 20,776 18,885 41,109 37,263 Sublease income (1,187) (976) (2,362) (1,933) Total lease cost $ 103,991 $ 99,546 $ 208,128 $ 197,839 The following table summarizes other lease related information for the six months ended June 30, 2020: For the Six Months Ended June 30, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 165,665 $ 157,372 Right-of-use assets obtained in exchange for new operating lease liabilities 125,160 79,018

Financing

Financing	6 Months Ended
Financing	Jun. 30, 2020
Financing
Financing	NOTE 6 – FINANCING The following table identifies the amounts included in “Long-term debt” on the accompanying Condensed Consolidated Balance Sheets as of June 30, 2020, and December 31, 2019 (in thousands): June 30, 2020 December 31, 2019 Revolving Credit Facility $ — $ 261,000 4.875% Senior Notes due 2021, effective interest rate of 4.947% 500,000 500,000 4.625% Senior Notes due 2021, effective interest rate of 4.643% 300,000 300,000 3.800% Senior Notes due 2022, effective interest rate of 3.845% 300,000 300,000 3.850% Senior Notes due 2023, effective interest rate of 3.851% 300,000 300,000 3.550% Senior Notes due 2026, effective interest rate of 3.570% 500,000 500,000 3.600% Senior Notes due 2027, effective interest rate of 3.619% 750,000 750,000 4.350% Senior Notes due 2028, effective interest rate of 4.383% 500,000 500,000 3.900% Senior Notes due 2029, effective interest rate of 3.901% 500,000 500,000 4.200% Senior Notes due 2030, effective interest rate of 4.205% 500,000 — Principal amount of long-term debt 4,150,000 3,911,000 Less: Unamortized discount and debt issuance costs 22,603 20,473 Long-term debt $ 4,127,397 $ 3,890,527 Unsecured revolving credit facility: On April 5, 2017, the Company entered into a credit agreement (the “Credit Agreement”). The Credit Agreement provides for a $1.2 billion unsecured revolving credit facility (the “Revolving Credit Facility”) arranged by JPMorgan Chase Bank, N.A., which is scheduled to mature in April 2022. The Credit Agreement includes a $200 million sub-limit for the issuance of letters of credit and a $75 million sub-limit for swing line borrowings under the Revolving Credit Facility. As described in the Credit Agreement governing the Revolving Credit Facility, the Company may, from time to time, subject to certain conditions, increase the aggregate commitments under the Revolving Credit Facility by up to $600 million, provided that the aggregate amount of the commitments does not exceed $1.8 billion at any time. As of June 30, 2020, and December 31, 2019, the Company had outstanding letters of credit, primarily to support obligations related to workers’ compensation, general liability and other insurance policies, in the amounts of $51.6 million and $38.9 million, respectively, reducing the aggregate availability under the Credit Agreement by those amounts. Borrowings under the Revolving Credit Facility (other than swing line loans) bear interest, at the Company’s option, at either an Alternate Base Rate or an Adjusted LIBO Rate (both as defined in the Credit Agreement) plus an applicable margin. Swing line loans made under the Revolving Credit Facility bear interest at an Alternate Base Rate plus the applicable margin for Alternate Base Rate loans. In addition, the Company pays a facility fee on the aggregate amount of the commitments under the Credit Agreement in an amount equal to a percentage of such commitments. The interest rate margins and facility fee are based upon the better of the ratings assigned to the Company’s debt by Moody’s Investor Service, Inc. and Standard & Poor’s Ratings Services, subject to limited exceptions. As of June 30, 2020, based upon the Company’s current credit ratings, its margin for Alternate Base Rate loans was 0.000%, its margin for Eurodollar Revolving Loans was 0.900% and its facility fee was 0.100%. The Credit Agreement contains certain covenants, including limitations on subsidiary indebtedness, a minimum consolidated fixed charge coverage ratio of 2.50:1.00 and a maximum consolidated leverage ratio of 3.50:1.00. The consolidated fixed charge coverage ratio includes a calculation of earnings before interest, taxes, depreciation, amortization, rent and non-cash share-based compensation expense to fixed charges. Fixed charges include interest expense, capitalized interest and rent expense. The consolidated leverage ratio includes a calculation of adjusted debt to earnings before interest, taxes, depreciation, amortization, rent and non-cash share-based compensation expense. Adjusted debt includes outstanding debt, outstanding stand-by letters of credit and similar instruments, five-times rent expense and excludes any premium or discount recorded in conjunction with the issuance of long-term debt. In the event that the Company should default on any covenant (subject to customary grace periods, cure rights and materiality thresholds) contained in the Credit Agreement, certain actions may be taken, including, but not limited to, possible termination of commitments, immediate payment of outstanding principal amounts plus accrued interest and other amounts payable under the Credit Agreement and litigation from lenders. As of June 30, 2020, the Company remained in compliance with all covenants under the Credit Agreement. Senior notes: On March 25, 2020, the Company issued $500 million aggregate principal amount of unsecured 4.200% Senior Notes due 2030 (“4.200% Senior Notes due 2030”) at a price to the public of 99.959% of their face value with U.S. Bank National Association (“U.S. Bank”) as trustee. Interest on the 4.200% Senior Notes due 2030 is payable on April 1 and October 1 of each year, beginning on October 1, 2020, and is computed on the basis of a 360-day year. The Company has issued a cumulative $4.2 billion aggregate principal amount of unsecured senior notes, which are due between 2021 and 2030, with UMB Bank, N.A. and U.S. Bank as trustees. Interest on the senior notes, ranging from 3.550% to 4.875%, is payable semi-annually and is computed on the basis of a 360-day year. None of the Company’s subsidiaries is a guarantor under the senior notes. Each of the senior notes is subject to certain customary covenants, with which the Company complied as of June 30, 2020.

Warranties

Warranties	6 Months Ended
Warranties	Jun. 30, 2020
Warranties
Warranties	NOTE 7 – WARRANTIES The Company provides warranties on certain merchandise it sells with warranty periods ranging from 30 days to limited lifetime warranties. The risk of loss arising from warranty claims is typically the obligation of the Company’s suppliers. Certain suppliers provide upfront allowances to the Company in lieu of accepting the obligation for warranty claims. For this merchandise, when sold, the Company bears the risk of loss associated with the cost of warranty claims. Differences between supplier allowances received by the Company, in lieu of warranty obligations and estimated warranty expense, are recorded as an adjustment to cost of sales. Estimated warranty costs, which are recorded as obligations at the time of sale, are based on the historical failure rate of each individual product line. The Company’s historical experience has been that failure rates are relatively consistent over time and that the ultimate cost of warranty claims to the Company has been driven by volume of units sold as opposed to fluctuations in failure rates or the variation of the cost of individual claims. The Company’s product warranty liabilities are included in “Other current liabilities” on the accompanying Condensed Consolidated Balance Sheets as of June 30, 2020, and December 31, 2019; the following table identifies the changes in the Company’s aggregate product warranty liabilities for the six months ended June 30, 2020 (in thousands): Warranty liabilities, balance at December 31, 2019 $ 61,069 Warranty claims (50,598) Warranty accruals 60,522 Warranty liabilities, balance at June 30, 2020 $ 70,993

Share Repurchase Program

Share Repurchase Program	6 Months Ended
Share Repurchase Program	Jun. 30, 2020
Share Repurchase Program
Share repurchase program	NOTE 8 – SHARE REPURCHASE PROGRAM In January of 2011, the Company’s Board of Directors approved a share repurchase program. Under the program, the Company may, from time to time, repurchase shares of its common stock, solely through open market purchases effected through a broker dealer at prevailing market prices, based on a variety of factors such as price, corporate trading policy requirements and overall market conditions. The Company’s Board of Directors may increase or otherwise modify, renew, suspend or terminate the share repurchase program at any time, without prior notice. As announced on February 5, 2020, the Company’s Board of Directors approved a resolution to increase the authorization amount under the share repurchase program by an additional $1.0 billion, resulting in a cumulative authorization amount of $13.8 billion. The additional authorization is effective for three years, beginning on its respective announcement date. In order to conserve liquidity in response to the novel coronavirus (“COVID-19”) pandemic, the Company suspended its share repurchase program on March 16, 2020. The Company continued to evaluate business conditions and its liquidity and, as a result of this evaluation, resumed its share repurchase program on May 29, 2020. The following table identifies shares of the Company’s common stock that have been repurchased as part of the Company’s publicly announced share repurchase program for the three and six months ended June 30, 2020 and 2019 (in thousands, except per share data): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Shares repurchased 185 1,633 1,669 2,560 Average price per share $ 417.79 $ 366.76 $ 390.14 $ 359.63 Total investment $ 76,974 $ 598,846 $ 651,011 $ 920,692 As of June 30, 2020, the Company had $917.7 million remaining under its share repurchase program. Subsequent to the end of the second quarter and through August 7, 2020, the Company repurchased 0.1 million additional shares of its common stock under its share repurchase program, at an average price of $423.09, for a total investment of $35.8 million. The Company has repurchased a total of 77.9 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through August 7, 2020, at an average price of $165.10, for a total aggregate investment of $12.9 billion.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
Accumulated Other Comprehensive Income (Loss)	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss)	NOTE 9 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) includes adjustments for foreign currency translations. The tables below summarize activity for changes in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2020 (in thousands): Foreign Total Accumulated Other Currency (1) Comprehensive Loss Accumulated other comprehensive loss, balance at March 31, 2020 $ (25,756) $ (25,756) Change in accumulated other comprehensive loss 3,645 3,645 Accumulated other comprehensive loss, balance at June 30, 2020 $ (22,111) $ (22,111) Foreign Total Accumulated Other Currency (1) Comprehensive Income (Loss) Accumulated other comprehensive income, balance at December 31, 2019 $ 4,890 $ 4,890 Change in accumulated other comprehensive income (27,001) (27,001) Accumulated other comprehensive loss, balance at June 30, 2020 $ (22,111) $ (22,111) (1) Foreign currency translation is not shown net of additional U.S. tax, as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested.

Revenue

Revenue	6 Months Ended
Revenue	Jun. 30, 2020
Revenue
Revenue	NOTE 10 – REVENUE The table below identifies the Company’s revenues disaggregated by major customer type for the three and six months ended June 30, 2020 and 2019 (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Sales to do-it-yourself customers $ 1,853,115 $ 1,434,146 $ 3,198,597 $ 2,771,175 Sales to professional service provider customers 1,175,030 1,113,485 2,245,229 2,152,266 Other sales and sales adjustments 63,450 42,243 124,256 77,041 Total sales $ 3,091,595 $ 2,589,874 $ 5,568,082 $ 5,000,482 As of June 30, 2020, and December 31, 2019, the Company had recorded a deferred revenue liability of $4.7 million and $4.1 million, respectively, related to its loyalty program, which were included in “Other liabilities” on the accompanying Condensed Consolidated Balance Sheets. During the three months ended June 30, 2020 and 2019, the Company recognized $3.8 million and $3.9 million, respectively, of deferred revenue related to its loyalty program, which were included in “Sales” on the accompanying Condensed Consolidated Statements of Income. During the six months ended June 30, 2020 and 2019, the Company recognized $6.9 million and $7.8 million, respectively, of deferred revenue related to its loyalty program, which were included in “Sales” on the accompanying Condensed Consolidated Statements of Income. See Note 7 for information concerning the expected costs associated with the Company’s assurance warranty obligations.

Share-Based Compensation and Be

Share-Based Compensation and Benefit Plans	6 Months Ended
Share-Based Compensation and Benefit Plans	Jun. 30, 2020
Share-Based Compensation and Benefit Plans
Share-based compensation and benefit plans	NOTE 11 – SHARE-BASED COMPENSATION AND BENEFIT PLANS The Company recognizes share-based compensation expense based on the fair value of the grants, awards or shares at the time of the grant, award or issuance. Share-based compensation includes stock option awards, restricted stock awards and stock appreciation rights issued under the Company’s incentive plans and stock issued through the Company’s employee stock purchase plan. Stock options: The Company’s incentive plans provide for the granting of stock options for the purchase of common stock of the Company to certain key employees of the Company. Employee stock options are granted at an exercise price that is equal to the closing market price of the Company’s common stock on the date of the grant. Employee stock options granted under the plans expire after 10 years and typically vest 25% per year, over four years. The Company records compensation expense for the grant date fair value of the option awards evenly over the vesting period or minimum required service period. The table below identifies stock option activity under these plans during the six months ended June 30, 2020 (in thousands, except per share data): Shares Weighted- Average (in thousands) Exercise Price Outstanding at December 31, 2019 1,635 $ 218.10 Granted 149 384.75 Exercised (121) 148.80 Forfeited or expired (13) 293.46 Outstanding at June 30, 2020 1,650 $ 237.64 Exercisable at June 30, 2020 1,107 $ 193.01 The fair value of each stock option award is estimated on the date of the grant using the Black-Scholes option pricing model. The Black-Scholes model requires the use of assumptions, including the risk free rate, expected life, expected volatility and expected dividend yield. ● Risk-free interest rate – The United States Treasury rates in effect at the time the options are granted for the options’ expected life. ● Expected life – Represents the period of time that options granted are expected to be outstanding. The Company uses historical experience to estimate the expected life of options granted. ● Expected volatility – Measure of the amount, by which the Company’s stock price is expected to fluctuate, based on a historical trend. ● Expected dividend yield – The Company has not paid, nor does it have plans in the foreseeable future to pay, any dividends. The table below identifies the weighted-average assumptions used for grants awarded during the six months ended June 30, 2020 and 2019: June 30, 2020 2019 Risk free interest rate 0.96 % 2.44 % Expected life 6.2 Years 6.0 Years Expected volatility 25.8 % 25.0 % Expected dividend yield — % — % The following table summarizes activity related to stock options awarded by the Company for the three and six months ended June 30, 2020 and 2019 (in thousands, except per share data): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Compensation expense for stock options awarded $ 4,557 $ 4,611 $ 9,435 $ 9,119 Income tax benefit from compensation expense related to stock options 1,148 1,146 2,377 2,267 The weighted-average grant-date fair value of options granted during the six months ended June 30, 2020, was $105.54 compared to $107.00 for the six months ended June 30, 2019. The remaining unrecognized compensation expense related to unvested stock option awards at June 30, 2020, was $39.2 million, and the weighted-average period of time over which this cost will be recognized is 2.7 years. Other share-based compensation plans: The Company sponsors other share-based compensation plans: an employee stock purchase plan and incentive plans that provide for the awarding of shares of restricted stock to certain key employees and directors. The Company’s employee stock purchase plan (the “ESPP”) permits eligible employees to purchase shares of the Company’s common stock at 85% of the fair market value. The fair value of shares issued under the ESPP is based on the average of the high and low market prices of the Company’s common stock during the offering periods, and compensation expense is recognized based on the discount between the fair value and the employee purchase price for the shares sold to employees. Restricted stock awarded under the incentive plans to certain key employees and directors vests evenly over a three-year period and is held in escrow until such vesting has occurred. The fair value of shares awarded under the incentive plans is based on the closing market price of the Company’s common stock on the date of the award, and compensation expense is recorded evenly over the vesting period or the minimum required service period. The table below summarizes activity related to the Company’s other share-based compensation plans for the three and six months ended June 30, 2020 and 2019 (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Compensation expense for shares issued under the ESPP $ 697 $ 632 $ 1,343 $ 1,209 Income tax benefit from compensation expense related to shares issued under the ESPP 176 157 338 301 Compensation expense for restricted shares awarded 351 348 702 687 Income tax benefit from compensation expense related to restricted awards $ 88 $ 86 $ 177 $ 171 Profit sharing and savings plan: The Company sponsors a contributory profit sharing and savings plan (the “401(k) Plan”) that covers substantially all employees who are at least 21 years of age and have completed one year of service. The Company makes matching contributions equal to 100% of the first 2% of each employee’s wages that are contributed and 25% of the next 4% of each employee’s wages that are contributed. An employee generally must be employed on December 31 to receive that year’s Company matching contribution, with the matching contribution funded annually at the beginning of the subsequent year following the year in which the matching contribution was earned. The Company may also make additional discretionary profit sharing contributions to the plan on an annual basis as determined by the Board of Directors. The Company did not make any discretionary contributions to the 401(k) Plan during the six months ended June 30, 2020 or 2019. The Company expensed matching contributions under the 401(k) Plan in the amounts of $7.3 million and $6.5 million for the three months ended June 30, 2020 and 2019, respectively, which were included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income. The Company expensed matching contributions to the 401(k) Plan in the amounts of $14.4 million and $12.6 million for the six months ended June 30, 2020 and 2019, respectively, which were included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income. Nonqualified deferred compensation plan: The Company sponsors a nonqualified deferred compensation plan (the “Deferred Compensation Plan”) for highly compensated employees whose contributions to the 401(k) Plan are limited due to the application of the annual limitations under the Internal Revenue Code. The Deferred Compensation Plan provides these employees with the opportunity to defer the full 6% of matched compensation, including salary and incentive based compensation that was precluded under the Company’s 401(k) Plan, which is then matched by the Company using the same formula as the 401(k) Plan. An employee generally must be employed on December 31 to receive that year’s Company matching contribution, with the matching contribution funded annually at the beginning of the subsequent year following the year in which the matching contribution was earned. In the event of bankruptcy, the assets of this plan are available to satisfy the claims of general creditors. The Company has an unsecured obligation to pay, in the future, the value of the deferred compensation and Company match, adjusted to reflect the performance, whether positive or negative, of selected investment measurement options chosen by each participant during the deferral period. The liability for compensation deferred under the Deferred Compensation Plan was $33.3 million and $32.2 million as of June 30, 2020, and December 31, 2019, respectively, which was included in “Other liabilities” on the accompanying Condensed Consolidated Balance Sheets. The Company expensed matching contributions under the Deferred Compensation Plan in the amount of less than $0.1 million for each of the three months ended June 30, 2020 and 2019, respectively, which were included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income. The Company expensed matching contributions under the Deferred Compensation Plan in the amount of $0.1 million for each of the six months ended June 30, 2020 and 2019, which were included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income. Stock appreciation rights: The Company’s incentive plans provide for the granting of stock appreciation rights, which expire after 10 years and vest 25% per year, over four years, and are settled in cash. As of June 30, 2020, there were 7,138 stock appreciation rights outstanding, and during the six months ended June 30, 2020, there was no stock appreciation rights granted. The liability for compensation to be paid for redeemed stock appreciation rights was $0.1 million as of June 30, 2020, which was included in “Other liabilities” on the Condensed Consolidated Balance Sheets. Compensation expense for stock appreciation rights was $0.1 million for each of the three and six months ended June 30, 2020, which were included in “Selling, general and administrative expenses” on the accompanying Condensed Consolidated Statements of Income.

Earnings Per Share

Earnings Per Share	6 Months Ended
Earnings Per Share	Jun. 30, 2020
Earnings Per Share
Earnings per share	NOTE 12 – EARNINGS PER SHARE The following table illustrates the computation of basic and diluted earnings per share for the three and six months ended June 30, 2020 and 2019 (in thousands, except per share data): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Numerator (basic and diluted): Net income $ 531,667 $ 353,681 $ 832,105 $ 674,833 Denominator: Weighted-average common shares outstanding – basic 74,205 77,613 74,611 78,047 Effect of stock options (1) 628 799 635 807 Weighted-average common shares outstanding – assuming dilution 74,833 78,412 75,246 78,854 Earnings per share: Earnings per share-basic $ 7.16 $ 4.56 $ 11.15 $ 8.65 Earnings per share-assuming dilution $ 7.10 $ 4.51 $ 11.06 $ 8.56 Antidilutive potential common shares not included in the calculation of diluted earnings per share: Stock options (1) 341 184 348 188 Weighted-average exercise price per share of antidilutive stock options (1) $ 378.84 $ 357.18 $ 378.29 $ 357.33 (1) See Note 11 for further information concerning the terms of the Company’s share-based compensation plans. For the three and six months ended June 30, 2020 and 2019, the computation of diluted earnings per share did not include certain securities. These securities represent underlying stock options not included in the computation of diluted earnings per share, because the inclusion of such equity awards would have been antidilutive. Subsequent to the end of the second quarter and through August 7, 2020, the Company repurchased an additional 0.1 million shares of its common stock under its share repurchase program, at an average price of $423.09, for a total investment of 35.8 million.

Legal Matters

Legal Matters	6 Months Ended
Legal Matters	Jun. 30, 2020
Legal Matters
Legal matters	NOTE 13 – LEGAL MATTERS O’Reilly is currently involved in litigation incidental to the ordinary conduct of the Company’s business. The Company accrues for litigation losses in instances where a material adverse outcome is probable and the Company is able to reasonably estimate the probable loss. The Company accrues for an estimate of material legal costs to be incurred in pending litigation matters. Although the Company cannot ascertain the amount of liability that it may incur from any of these matters, it does not currently believe that, in the aggregate, these matters, taking into account applicable insurance and accruals, will have a material adverse effect on its consolidated financial position, results of operations or cash flows in a particular quarter or annual period.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
Recent Accounting Pronouncements	Jun. 30, 2020
Recent Accounting Pronouncements
Recent accounting pronouncements	NOTE 14 – RECENT ACCOUNTING PRONOUNCEMENTS In June of 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). Under ASU 2016-13, businesses and other organizations are required to present financial assets, measured at amortized costs basis, at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis, such as trade receivables. The measurement of expected credit loss will be based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. For public companies, ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company adopted this guidance using the modified retrospective adoption method beginning with its first quarter ending March 31, 2020, and applied it to all applicable accounts. The application of this new guidance did not have a material impact on the Company’s consolidated financial condition, results of operations or cash flows. See Note 4 for further information concerning the Company’s allowance for accounts receivable.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
Basis of Presentation (Policies)	Jun. 30, 2020
Basis of Presentation.
Principles of consolidation, policy	Principles of consolidation: The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation.
Variable interest entities, policy	Variable Interest Entities: The Company invests in certain tax credit funds that promote renewable energy. These investments generate a return primarily through the realization of federal tax credits and other tax benefits. The Company accounts for the tax attributes of its renewable energy investments using the deferral method. Under this method, realized investment tax credits and other tax benefits are recognized as a reduction of the renewable energy investments. The Company determined its investment in these tax credit funds was an investment in a variable interest entity (“VIE”). The Company analyzes any investments in VIEs at inception and again if certain triggering events are identified to determine if it is the primary beneficiary. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. As of June 30, 2020, the Company invested in two unconsolidated tax credit fund entities that were considered to be VIEs and concluded it was not the primary beneficiary of either entity, as it did not have the power to control the activities that most significantly impact the entities, and has accounted for these investments using the equity method. The Company’s maximum exposure to losses associated with these VIEs is limited to its net investment, which was $14.3 million as of June 30, 2020, and was included in “Other assets, net” on the accompanying Condensed Consolidated Balance Sheets.

Fair Value Measurements (Polici

Fair Value Measurements (Policies)	6 Months Ended
Fair Value Measurements (Policies)	Jun. 30, 2020
Fair Value Measurements
Fair value of financial instruments, policy	The Company uses the fair value hierarchy, which prioritizes the inputs used to measure the fair value of certain of its financial instruments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The Company uses the income and market approaches to determine the fair value of its assets and liabilities. The three levels of the fair value hierarchy are set forth below: ● Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. ● Level 2 – Inputs other than quoted prices in active markets included within Level 1 that are observable for the asset or liability, either directly or indirectly. ● Level 3 – Unobservable inputs for the asset or liability.

Allowance For Doubtful Accoun_2

Allowance For Doubtful Accounts (Policies)	6 Months Ended
Allowance For Doubtful Accounts (Policies)	Jun. 30, 2020
Allowance for Doubtful Accounts.
Allowances for doubtful accounts, policy	The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company considers the following factors when determining if collection is reasonably assured: customer creditworthiness, past transaction history with the customer, current expectations of future economic and industry trends, changes in customer payment terms and management’s expectations. Allowances for doubtful accounts are determined based on historical experience and an evaluation of the current composition of accounts receivable. The Company grants credit to certain professional service provider and jobber customers who meet the Company’s pre-established credit requirements. Concentrations of credit risk with respect to these receivables are limited because the Company’s customer base consists of a large number of small customers, spreading the credit risk across a broad base regarded as a single class of financing receivable by the Company. The Company also controls this credit risk through credit approvals, credit limits and accounts receivable and credit monitoring procedures. Generally, the Company does not require security when credit is granted to customers. Credit is granted to customers on a short-term basis, consisting primarily of daily, weekly or monthly accounts. Credit losses are provided for in the Company’s condensed consolidated financial statements and have consistently been within management’s expectations.
Amounts receivable from suppliers, policy	The Company receives concessions from its suppliers through a variety of programs and arrangements, including allowances for new stores and warranties, volume purchase rebates and co-operative advertising. Co-operative advertising allowances that are incremental to the Company’s advertising program, specific to a product or event and identifiable for accounting purposes are reported as a reduction of advertising expense in the period in which the advertising occurred. All other supplier concessions are recognized as a reduction to the cost of sales. Amounts receivable from suppliers also include amounts due to the Company for changeover merchandise and product returns. The Company regularly reviews supplier receivables for collectability and assesses the need for a reserve for uncollectable amounts based on an evaluation of the Company’s suppliers’ financial positions and corresponding abilities to meet financial obligations.

Warranties (Policies)

Warranties (Policies)	6 Months Ended
Warranties (Policies)	Jun. 30, 2020
Warranties
Warranties, policy	The Company provides warranties on certain merchandise it sells with warranty periods ranging from 30 days to limited lifetime warranties. The risk of loss arising from warranty claims is typically the obligation of the Company’s suppliers. Certain suppliers provide upfront allowances to the Company in lieu of accepting the obligation for warranty claims. For this merchandise, when sold, the Company bears the risk of loss associated with the cost of warranty claims. Differences between supplier allowances received by the Company, in lieu of warranty obligations and estimated warranty expense, are recorded as an adjustment to cost of sales. Estimated warranty costs, which are recorded as obligations at the time of sale, are based on the historical failure rate of each individual product line. The Company’s historical experience has been that failure rates are relatively consistent over time and that the ultimate cost of warranty claims to the Company has been driven by volume of units sold as opposed to fluctuations in failure rates or the variation of the cost of individual claims.

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Policies)	6 Months Ended
Recent Accounting Pronouncements (Policies)	Jun. 30, 2020
Recent Accounting Pronouncements
Recent accounting pronouncements, policy	In June of 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). Under ASU 2016-13, businesses and other organizations are required to present financial assets, measured at amortized costs basis, at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis, such as trade receivables. The measurement of expected credit loss will be based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. For public companies, ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company adopted this guidance using the modified retrospective adoption method beginning with its first quarter ending March 31, 2020, and applied it to all applicable accounts. The application of this new guidance did not have a material impact on the Company’s consolidated financial condition, results of operations or cash flows. See Note 4 for further information concerning the Company’s allowance for accounts receivable.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2020
Fair Value Measurements
Valuation of marketable securities	June 30, 2020 Quoted Priced in Active Markets Significant Other Significant for Identical Instruments Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Marketable securities $ 33,250 $ — $ — $ 33,250 December 31, 2019 Quoted Prices in Active Markets Significant Other Significant for Identical Instruments Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Marketable securities $ 32,201 $ — $ — $ 32,201
Valuation of senior notes	June 30, 2020 December 31, 2019 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior Notes $ 4,127,397 $ 4,605,743 $ 3,629,527 $ 3,881,925

Allowance For Doubtful Accoun_3

Allowance For Doubtful Accounts (Tables)	6 Months Ended
Allowance For Doubtful Accounts (Tables)	Jun. 30, 2020
Allowance for Doubtful Accounts.
Changes in allowance for doubtful accounts	Allowance for doubtful accounts, balance at December 31, 2019 $ 14,417 Reserve accruals 2,889 Uncollectable accounts written-off (3,703) Foreign currency translation (128) Allowance for doubtful accounts, balance at June 30, 2020 $ 13,475

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Jun. 30, 2020
Leases
Summary of total lease cost	For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Operating lease cost $ 83,461 $ 80,091 $ 166,656 $ 158,905 Short-term operating lease cost 941 1,546 2,725 3,604 Variable operating lease cost 20,776 18,885 41,109 37,263 Sublease income (1,187) (976) (2,362) (1,933) Total lease cost $ 103,991 $ 99,546 $ 208,128 $ 197,839
Other lease related information	For the Six Months Ended June 30, 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 165,665 $ 157,372 Right-of-use assets obtained in exchange for new operating lease liabilities 125,160 79,018

Financing (Tables)

Financing (Tables)	6 Months Ended
Financing (Tables)	Jun. 30, 2020
Financing
Outstanding financing facilities	June 30, 2020 December 31, 2019 Revolving Credit Facility $ — $ 261,000 4.875% Senior Notes due 2021, effective interest rate of 4.947% 500,000 500,000 4.625% Senior Notes due 2021, effective interest rate of 4.643% 300,000 300,000 3.800% Senior Notes due 2022, effective interest rate of 3.845% 300,000 300,000 3.850% Senior Notes due 2023, effective interest rate of 3.851% 300,000 300,000 3.550% Senior Notes due 2026, effective interest rate of 3.570% 500,000 500,000 3.600% Senior Notes due 2027, effective interest rate of 3.619% 750,000 750,000 4.350% Senior Notes due 2028, effective interest rate of 4.383% 500,000 500,000 3.900% Senior Notes due 2029, effective interest rate of 3.901% 500,000 500,000 4.200% Senior Notes due 2030, effective interest rate of 4.205% 500,000 — Principal amount of long-term debt 4,150,000 3,911,000 Less: Unamortized discount and debt issuance costs 22,603 20,473 Long-term debt $ 4,127,397 $ 3,890,527

Warranties (Tables)

Warranties (Tables)	6 Months Ended
Warranties (Tables)	Jun. 30, 2020
Warranties
Changes in product warranty liabilities	Warranty liabilities, balance at December 31, 2019 $ 61,069 Warranty claims (50,598) Warranty accruals 60,522 Warranty liabilities, balance at June 30, 2020 $ 70,993

Share Repurchase Program (Table

Share Repurchase Program (Tables)	6 Months Ended
Share Repurchase Program (Tables)	Jun. 30, 2020
Share Repurchase Program
Schedule of shares repurchased	For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Shares repurchased 185 1,633 1,669 2,560 Average price per share $ 417.79 $ 366.76 $ 390.14 $ 359.63 Total investment $ 76,974 $ 598,846 $ 651,011 $ 920,692

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
Accumulated Other Comprehensive Income (Loss) (Tables)	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss)
Summary of activity for changes in accumulated other comprehensive income	Foreign Total Accumulated Other Currency (1) Comprehensive Loss Accumulated other comprehensive loss, balance at March 31, 2020 $ (25,756) $ (25,756) Change in accumulated other comprehensive loss 3,645 3,645 Accumulated other comprehensive loss, balance at June 30, 2020 $ (22,111) $ (22,111) Foreign Total Accumulated Other Currency (1) Comprehensive Income (Loss) Accumulated other comprehensive income, balance at December 31, 2019 $ 4,890 $ 4,890 Change in accumulated other comprehensive income (27,001) (27,001) Accumulated other comprehensive loss, balance at June 30, 2020 $ (22,111) $ (22,111) (1) Foreign currency translation is not shown net of additional U.S. tax, as other basis differences of non-U.S. subsidiaries are intended to be permanently reinvested.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
Revenue (Tables)	Jun. 30, 2020
Revenue
Disaggregation of revenue	For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Sales to do-it-yourself customers $ 1,853,115 $ 1,434,146 $ 3,198,597 $ 2,771,175 Sales to professional service provider customers 1,175,030 1,113,485 2,245,229 2,152,266 Other sales and sales adjustments 63,450 42,243 124,256 77,041 Total sales $ 3,091,595 $ 2,589,874 $ 5,568,082 $ 5,000,482

Share-Based Compensation and _2

Share-Based Compensation and Benefit Plans (Tables)	6 Months Ended
Share-Based Compensation and Benefit Plans (Tables)	Jun. 30, 2020
Restricted stock [Member]
Share-Based Compensation and Benefit Plans
Summary of activity of share-based compensation and benefit plans	For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Compensation expense for shares issued under the ESPP $ 697 $ 632 $ 1,343 $ 1,209 Income tax benefit from compensation expense related to shares issued under the ESPP 176 157 338 301 Compensation expense for restricted shares awarded 351 348 702 687 Income tax benefit from compensation expense related to restricted awards $ 88 $ 86 $ 177 $ 171
Stock option [Member]
Share-Based Compensation and Benefit Plans
Summary of stock options	Shares Weighted- Average (in thousands) Exercise Price Outstanding at December 31, 2019 1,635 $ 218.10 Granted 149 384.75 Exercised (121) 148.80 Forfeited or expired (13) 293.46 Outstanding at June 30, 2020 1,650 $ 237.64 Exercisable at June 30, 2020 1,107 $ 193.01
Black-Scholes option pricing model	June 30, 2020 2019 Risk free interest rate 0.96 % 2.44 % Expected life 6.2 Years 6.0 Years Expected volatility 25.8 % 25.0 % Expected dividend yield — % — %
Summary of activity of share-based compensation and benefit plans	For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Compensation expense for stock options awarded $ 4,557 $ 4,611 $ 9,435 $ 9,119 Income tax benefit from compensation expense related to stock options 1,148 1,146 2,377 2,267

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
Earnings Per Share (Tables)	Jun. 30, 2020
Earnings Per Share
Computation of basic and diluted earnings per share	For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Numerator (basic and diluted): Net income $ 531,667 $ 353,681 $ 832,105 $ 674,833 Denominator: Weighted-average common shares outstanding – basic 74,205 77,613 74,611 78,047 Effect of stock options (1) 628 799 635 807 Weighted-average common shares outstanding – assuming dilution 74,833 78,412 75,246 78,854 Earnings per share: Earnings per share-basic $ 7.16 $ 4.56 $ 11.15 $ 8.65 Earnings per share-assuming dilution $ 7.10 $ 4.51 $ 11.06 $ 8.56 Antidilutive potential common shares not included in the calculation of diluted earnings per share: Stock options (1) 341 184 348 188 Weighted-average exercise price per share of antidilutive stock options (1) $ 378.84 $ 357.18 $ 378.29 $ 357.33 (1) See Note 11 for further information concerning the terms of the Company’s share-based compensation plans.

Basis of Presentation (Narrativ

Basis of Presentation (Narrative) (Details) $ in Millions	Jun. 30, 2020USD ($)
Basis of Presentation
Equity method investment in VIEs, net	$ 14.3

Business Combination (Narrative

Business Combination (Narrative) (Details) - Mayasa [Member] - USD ($) $ in Millions	Dec. 31, 2019	Nov. 29, 2019
Business Combination
Finite lived intangible assets acquired		$ 22.3
Trade names and trademarks [Member]
Business Combination
Indefinite lived intangible assets acquired		36
Goodwill and acquisition intangibles [Member]
Business Combination
Provisional goodwill and intangibles related to Mayasa acquisition	$ 128.1
Goodwill [Member]
Business Combination
Residual goodwill		$ 75.6

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Fair Value Measurements
Non-financial assets and liabilities measured at fair value on a nonrecurring basis	$ 0		$ 0		$ 0
Other Income Expense [Member]
Fair Value Measurements
Increase (decrease) in fair value of marketable securities	$ 4.5	$ 1	$ (0.7)	$ 3.7

Fair Value Measurements (Fair V

Fair Value Measurements (Fair Value of Marketable Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value Measurements
Estimated fair value of marketable securities	$ 33,250	$ 32,201
Fair value, inputs, Level 1 [Member]
Fair Value Measurements
Estimated fair value of marketable securities	$ 33,250	$ 32,201

Fair Value Measurements (Fair_2

Fair Value Measurements (Fair Value of Senior Notes) (Details) - Fair value, inputs, Level 2 [Member] - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value Measurements
Carrying amount of senior notes	$ 4,127,397	$ 3,629,527
Estimated fair value of senior notes	$ 4,605,743	$ 3,881,925

Allowance for Doubtful Accoun_4

Allowance for Doubtful Accounts (Changes in Allowance for Doubtful Accounts) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Allowance for Doubtful Accounts
Allowance for doubtful accounts, balance at December 31, 2019	$ 14,417
Reserve accruals	2,889
Uncollectable accounts written-off	(3,703)
Foreign currency translation	(128)
Allowance for doubtful accounts, balance at June 30, 2020	$ 13,475

Leases (Summary of Total Lease

Leases (Summary of Total Lease Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases
Operating lease cost	$ 83,461	$ 80,091	$ 166,656	$ 158,905
Short-term operating lease cost	941	1,546	2,725	3,604
Variable operating lease cost	20,776	18,885	41,109	37,263
Sublease income	(1,187)	(976)	(2,362)	(1,933)
Total lease cost	$ 103,991	$ 99,546	$ 208,128	$ 197,839

Leases (Supplemental Cash Flow

Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Leases.
Cash paid for amounts included in the measurement of operating lease liabilities, operating cash flows from operating leases	$ 165,665	$ 157,372
Right-of-use asset obtained in exchange for new operating lease liability	$ 125,160	$ 79,018

Financing (Unsecured Revolving

Financing (Unsecured Revolving Credit Facility) (Narrative) (Details) - Revolving Credit Facility [Member] - Unsecured debt [Member] - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Financing
Credit agreement inception date	Apr. 5, 2017
Line of credit, current borrowing capacity	$ 1,200
Current maximum borrowing capacity under credit facility	1,800
Maximum aggregate increase to credit facility allowable	600
Letters of credit	$ 51.6	$ 38.9
Line of credit facility fee percentage	0.10%
Spread over Alternate Base rate [Member]
Financing
Line of credit current interest rate	0.00%
Spread over Eurodollar Revolving rate [Member]
Financing
Line of credit current interest rate	0.90%
Through maturity [Member]
Financing
Minimum debt instrument consolidated fixed charge coverage ratio covenant	2.50
Maximum debt instrument consolidated leverage ratio covenant	3.50
Letter of credit [Member]
Financing
Line of credit facility sublimit	$ 200
Swing line revolver [Member]
Financing
Line of credit facility sublimit	$ 75

Financing (Senior Notes) (Narra

Financing (Senior Notes) (Narrative) (Details) $ in Thousands	Mar. 25, 2020USD ($)D	Jun. 30, 2020USD ($)D
Senior notes [Member]
Financing
Number of days in annual interest calculation period \| D		360
Aggregate principle of unsecured senior notes \| $		$ 4,200,000
Minimum [Member] \| Senior notes [Member]
Financing
Interest rate of senior notes		3.55%
Maximum [Member] \| Senior notes [Member]
Financing
Interest rate of senior notes		4.875%
4.200% Senior Notes due 2030 [Member]
Financing
Face amount of senior notes \| $	$ 500,000	$ 500,000
Interest rate of senior notes	4.20%	4.20%
Percentage of face value of debt instrument	99.959%
Number of days in annual interest calculation period \| D	360

Financing (Outstanding Financin

Financing (Outstanding Financing Facilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 25, 2020	Dec. 31, 2019
Financing
Principal amount of long-term debt	$ 4,150,000		$ 3,911,000
Less: Unamortized discount and debt issuance costs	22,603		20,473
Long-term debt	4,127,397		3,890,527	[1]
4.875% Senior Notes due 2021 [Member]
Financing
Senior notes, principal amount	$ 500,000		$ 500,000
Interest rate of senior notes	4.875%		4.875%
Senior notes, effective interest rate	4.947%
4.625% Senior Notes due 2021 [Member]
Financing
Senior notes, principal amount	$ 300,000		$ 300,000
Interest rate of senior notes	4.625%		4.625%
Senior notes, effective interest rate	4.643%
3.800% Senior Notes due 2022 [Member]
Financing
Senior notes, principal amount	$ 300,000		$ 300,000
Interest rate of senior notes	3.80%		3.80%
Senior notes, effective interest rate	3.845%
3.850% Senior Notes due 2023 [Member]
Financing
Senior notes, principal amount	$ 300,000		$ 300,000
Interest rate of senior notes	3.85%		3.85%
Senior notes, effective interest rate	3.851%
3.550% Senior Notes due 2026 [Member]
Financing
Senior notes, principal amount	$ 500,000		$ 500,000
Interest rate of senior notes	3.55%		3.55%
Senior notes, effective interest rate	3.57%
3.600% Senior Notes due 2027 [Member]
Financing
Senior notes, principal amount	$ 750,000		$ 750,000
Interest rate of senior notes	3.60%		3.60%
Senior notes, effective interest rate	3.619%
4.350% Senior Notes due 2028 [Member]
Financing
Senior notes, principal amount	$ 500,000		$ 500,000
Interest rate of senior notes	4.35%		4.35%
Senior notes, effective interest rate	4.383%
3.900% Senior Notes due 2029 [Member]
Financing
Senior notes, principal amount	$ 500,000		$ 500,000
Interest rate of senior notes	3.90%		3.90%
Senior notes, effective interest rate	3.901%
4.200% Senior Notes due 2030 [Member]
Financing
Senior notes, principal amount	$ 500,000	$ 500,000
Interest rate of senior notes	4.20%	4.20%
Senior notes, effective interest rate	4.205%
Revolving Credit Facility [Member]
Financing
Unsecured revolving credit facility	$ 0		$ 261,000

[1]	The balance sheet at December 31, 2019, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.

Warranties (Product Warranty Li

Warranties (Product Warranty Liabilities) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Warranties
Warranty liabilities, December 31, 2019	$ 61,069
Warranty claims	(50,598)
Warranty accruals	60,522
Warranty liabilities, June 30, 2020	$ 70,993

Share Repurchase Program (Narra

Share Repurchase Program (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Feb. 05, 2020	Aug. 07, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Aug. 07, 2020
Share Repurchase Program
Increase in authorized amount	$ 1,000,000
Cumulative authorized amount	$ 13,800,000
Authorization effective period	3 years
Remaining balance under share repurchase program			$ 917,700		$ 917,700
Common stock repurchased, shares			185	1,633	1,669	2,560
Common stock repurchased, average price per share			$ 417.79	$ 366.76	$ 390.14	$ 359.63
Common stock repurchased, value			$ 76,974	$ 598,846	$ 651,011	$ 920,692
Subsequent event
Share Repurchase Program
Common stock repurchased, shares		100					77,900
Common stock repurchased, average price per share		$ 423.09					$ 165.10
Common stock repurchased, value		$ 35,800					$ 12,900,000

Share Repurchase Program (Sched

Share Repurchase Program (Schedule of Shares Repurchased) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share Repurchase Program
Shares repurchased	185	1,633	1,669	2,560
Average price per share	$ 417.79	$ 366.76	$ 390.14	$ 359.63
Total investment	$ 76,974	$ 598,846	$ 651,011	$ 920,692

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020		Jun. 30, 2019
Balance at beginning of period	$ 108,844	$ 372,365	$ 397,340	[1]	$ 353,667
Change in accumulated other comprehensive income	3,645	0	(27,001)		0
Balance at end of period	589,100	144,682	589,100		144,682
Accumulated Other Comprehensive Income (Loss) [Member]
Balance at beginning of period	(25,756)	0	4,890		0
Change in accumulated other comprehensive income	3,645		(27,001)
Balance at end of period	(22,111)	$ 0	(22,111)		$ 0
Foreign Currency [Member]
Balance at beginning of period	(25,756)		4,890
Change in accumulated other comprehensive income	3,645		(27,001)
Balance at end of period	$ (22,111)		$ (22,111)

[1]	The balance sheet at December 31, 2019, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.

Revenue (Narrative) (Details)

Revenue (Narrative) (Details) - Loyalty program [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Revenue
Deferred revenue liability	$ 4.7		$ 4.7		$ 4.1
Deferred revenue, recognized	$ 3.8	$ 3.9	$ 6.9	$ 7.8

Revenue (Disaggregation of Reve

Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue
Disaggregated sales	$ 3,091,595	$ 2,589,874	$ 5,568,082	$ 5,000,482
DIY customer [Member]
Disaggregation of Revenue
Disaggregated sales	1,853,115	1,434,146	3,198,597	2,771,175
Professional service provider customer [Member]
Disaggregation of Revenue
Disaggregated sales	1,175,030	1,113,485	2,245,229	2,152,266
Other sales and sales adjustments [Member]
Disaggregation of Revenue
Disaggregated sales	$ 63,450	$ 42,243	$ 124,256	$ 77,041

Share-Based Compensation and _3

Share-Based Compensation and Benefit Plans (Stock Option) (Narrative) (Details) - Stock option [Member] - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Share-Based Compensation and Benefit Plans
Weighted-average grant date fair value of options awarded	$ 105.54	$ 107
Remaining unrecognized compensation expense	$ 39.2
Weighted-average period for cost recognition	2 years 8 months 12 days
Employee stock option [Member]
Share-Based Compensation and Benefit Plans
Options expiration period	10 years
Vesting period	4 years
Option vesting rate per year	25.00%

Share-Based Compensation and _4

Share-Based Compensation and Benefit Plans (Other Share-Based Compensation) (Narrative) (Details) - Employee stock purchase plan [Member]	6 Months Ended
	Jun. 30, 2020
Share-Based Compensation and Benefit Plans
Employee stock purchase plan stock purchase percentage	85.00%
Restricted stock [Member]
Share-Based Compensation and Benefit Plans
Vesting period	3 years

Share-Based Compensation and _5

Share-Based Compensation and Benefit Plans (Profit Sharing and Savings Plan) (Narrative) (Detail) - Profit sharing and savings plan [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-Based Compensation and Benefit Plans
Profit sharing and savings plan, employer discretionary contribution			$ 0	$ 0
Profit sharing and savings plan, cost recognized	$ 7,300	$ 6,500	$ 14,400	$ 12,600
Employee's first 2% of contributed wages [Member]
Share-Based Compensation and Benefit Plans
Profit sharing and savings plan, Company match			100.00%
Employee's next 4% of contributed wages [Member]
Share-Based Compensation and Benefit Plans
Profit sharing and savings plan, Company match			25.00%

Share-Based Compensation and _6

Share-Based Compensation and Benefit Plans (Nonqualified Deferred Compensation Plan) (Narrative) (Details) - Nonqualified Deferred Compensation Plan [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Share-Based Compensation and Benefit Plans
Deferred compensation plan obligation	$ 33.3		$ 33.3		$ 32.2
Deferred compensation plan cost recognized	$ 0.1	$ 0.1	$ 0.1	$ 0.1

Share-Based Compensation and _7

Share-Based Compensation and Benefit Plans (Stock Appreciation Rights) (Narrative) (Details) - Stock appreciation rights (SARs) [Member] $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020USD ($)shares	Jun. 30, 2020USD ($)shares
Share-Based Compensation and Benefit Plans
Stock appreciation rights expiration period		10 years
Stock appreciation rights vesting rate per year		25.00%
Vesting period		4 years
Stock appreciation rights outstanding \| shares	7,138	7,138
Stock appreciation rights granted during the period, units \| shares		0
Liability for compensation to be paid for redeemed stock appreciation rights \| $	$ 0.1	$ 0.1
Compensation expense for share-based compensation \| $	$ 0.1	$ 0.1

Share-Based Compensation and _8

Share-Based Compensation and Benefit Plans (Summary of Stock Options) (Details) - Stock option [Member] - Employee stock option [Member] - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2020
Share-Based Compensation and Benefit Plans
Outstanding at December 31, 2019, shares	1,635
Outstanding at December 31, 2019, weighted-average exercise price	$ 218.10
Granted, shares	149
Granted, weighted-average exercise price	$ 384.75
Exercised, shares	(121)
Exercised, weighted-average exercise price	$ 148.80
Forfeited or expired, shares	(13)
Forfeited or expired, weighted-average exercise price	$ 293.46
Outstanding at June 30, 2020, shares	1,650
Outstanding at June 30, 2020, weighted-average exercise price	$ 237.64
Exercisable at June 30, 2020, shares	1,107
Exercisable at June 30, 2020, weighted-average exercise price	$ 193.01

Share-Based Compensation and _9

Share-Based Compensation and Benefit Plans (Black-Scholes Option Pricing Model) (Details)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Share-Based Compensation and Benefit Plans
Risk-free interest rate	0.96%	2.44%
Expected life	6 years 2 months 12 days	6 years
Expected volatility	25.80%	25.00%
Expected dividend yield	0.00%	0.00%

Share-Based Compensation and_10

Share-Based Compensation and Benefit Plans (Stock Option Activity) (Details) - Employee stock option [Member] - Stock option [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-Based Compensation and Benefit Plans
Compensation expense for share-based compensation	$ 4,557	$ 4,611	$ 9,435	$ 9,119
Income tax benefit from compensation expense for share-based compensation	$ 1,148	$ 1,146	$ 2,377	$ 2,267

Share-Based Compensation and_11

Share-Based Compensation and Benefit Plans (Other Share-Based Compensation Activity) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Employee stock purchase plan [Member]
Share-Based Compensation and Benefit Plans
Compensation expense for share-based compensation	$ 697	$ 632	$ 1,343	$ 1,209
Income tax benefit from compensation expense for share-based compensation	176	157	338	301
Restricted stock [Member]
Share-Based Compensation and Benefit Plans
Compensation expense for share-based compensation	351	348	702	687
Income tax benefit from compensation expense for share-based compensation	$ 88	$ 86	$ 177	$ 171

Earnings Per Share (Computation

Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator (basic and diluted):
Net income	$ 531,667	$ 353,681	$ 832,105	$ 674,833	[1]
Denominator:
Denominator for basic earnings per share - weighted-average shares	74,205	77,613	74,611	78,047
Effect of stock options	628	799	635	807
Denominator for diluted earnings per share - weighted-average shares and assumed conversion	74,833	78,412	75,246	78,854
Earnings per share - basic	$ 7.16	$ 4.56	$ 11.15	$ 8.65
Earnings per share - assuming dilution	$ 7.10	$ 4.51	$ 11.06	$ 8.56
Antidilutive stock options	341	184	348	188
Weighted-average exercise price per share of antidilutive stock options	$ 378.84	$ 357.18	$ 378.29	$ 357.33

[1]	Note: Certain prior period amounts have been reclassified to conform to current period presentation.

Earnings Per Share (Computati_2

Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		115 Months Ended
	Aug. 07, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Aug. 07, 2020
Subsequent Event [Line Items]
Shares repurchased		185	1,633	1,669	2,560
Average price per share		$ 417.79	$ 366.76	$ 390.14	$ 359.63
Total investment		$ 76,974	$ 598,846	$ 651,011	$ 920,692
Subsequent event
Subsequent Event [Line Items]
Shares repurchased	100					77,900
Average price per share	$ 423.09					$ 165.10
Total investment	$ 35,800					$ 12,900,000